Online Gamblers Warned About BitGo Bitcoin DDOS Attack

Published Monday, June 06, 2016 -
Online Gamblers Warned About BitGo Bitcoin DDOS Attack

The use of Bitcoin has certain advantages for the online gambler but as the virtual coin has grown in popularity so has the risk of possible loss. The 2014 collapse of the Mt.Gox Bitcoin exchange lost a reported 744,400 BTC, a sum of assets that was then valued at $350 million USD. Those people who lost their money within the virtual debacle tried to file a class action law suit in Ontario but were disappointed as the suit has been dismissed in Canada, according to a notice posted on May 18th 2016 by Charney Lawyers PC. Sources reported that the bid proved unsuccessful due to Mt Gox’s bankruptcy filing in Japan, which was honored by domestic courts last year.

It appears that the history of the virtual currency is repeating itself with the latest news from various media outlets that BitGo, a bitcoin wallet service, was hit by a “massive” distributed denial of service attack recently. BitGo claimed to be “the most secure” bitcoin wallet solution in the market.  BitGo maintains it has developed a “ground-breaking and extremely secure platform” that allows “near instant Bitcoin transactions.

There have been other issues with the use of bitcoin money such as the closing down of Canada-based Cointrader, in March after an internal audit revealed “a deficiency of bitcoin” in company wallets, leading to delays in withdrawals.

Hong Kong-based Gatecoin was also forced to shut down its exchange and its ports on May 9 2016 after discovering a “potential leak” on its hot wallets. It has been suggested that the breach in the system caused the crypto currency exchange to lose as much as 185,000 ethers and 250 bitcoins, worth an estimated $2.14 million. The gone virtual coin makes up 15 percent of the total assets held by Gatecoin.

In the most recent revelation about the BitGo platform attack there is a ripple effect that concerns online gamblers using Wirex, Bitstamp, Bitfinex, Unocoin, and Kraken who are being warned about possible issues.

UPDATE: To clarify that there was no bitcoin hack at BitGo - their servers were under attack to bring down the website, a so called DDOS Attack.  No coins were lost, nor were any coins ever in jeopardy. A Distributed Denial of Service (DDoS) attack is an attempt to make an online service unavailable by overwhelming it with traffic from multiple sources. They target a wide variety of important resources, from banks to news websites, and present a major challenge to making sure people can publish and access important information.







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